Posted September 4, 2026

Booking Football Hospitality? Watch Out for the Tax Rules

The football season is back, bringing renewed optimism, fresh signings and the annual belief that this could finally be the year for Adam’s beloved Bradford City! We admire his optimism, even if the rest of us think it might be a slightly longer journey than he’d like!

As the season starts, many businesses plan to take clients to matches. Owners may enjoy hospitality packages, and recognise football’s relationship-building potential. However, before booking, check the tax implications.

Taking Clients to a Match?

Business owners often assume that because football hospitality aims to generate business, the costs are tax deductible. Unfortunately, that isn’t usually the case.

When you take clients or prospective clients to a match, you generally treat the costs as business entertaining. That means the company will normally receive no Corporation Tax relief on entertaining costs. In most cases, it cannot recover the VAT either. This applies when you entertain existing customers. It also covers developing new relationships. It covers persuading a prospect that your company is exactly what they’ve been missing. HMRC accepts there’s a commercial purpose, it just doesn’t provide tax relief for it.

What About Staff?

The position is much more favourable when the hospitality is provided for employees rather than clients. Staff entertainment is generally deductible for Corporation Tax purposes, and the VAT treatment can also be more beneficial. Many business owners know the annual staff function exemption. If conditions are met, staff can have tax-free events. The total cost must stay under £150 per head, VAT included. Of course, depending on the club and the hospitality package, staying within £150 per person might require some careful shopping around.

When Clients and Staff Attend Together

This is where things often become more complicated. When staff and clients attend the event, tax rules treat attendees differently, so the organiser must allocate the entertaining costs between staff and clients. It’s not difficult to deal with, but it does require a little thought.

Keep Good Records

One of the simplest things you can do is keep a record of who attended the event and why. If HMRC ever asks questions, you’ll want to be able to demonstrate which attendees were employees, which were clients and the overall business purpose of the event. Good record keeping makes life much easier and supports the tax treatment adopted.

This is particularly important for owner-managed businesses, where the distinction between business entertaining and personal expenditure can sometimes become blurred.

Enjoy the Football, Just Budget for the Tax

We’re certainly not suggesting businesses stop entertaining clients or rewarding staff. People build some of the best business relationships outside the meeting room, and corporate hospitality remains an important part of doing business. However, it’s important to understand that the actual cost can be significantly higher than expected once the loss of Corporation Tax relief and VAT recovery is taken into account.

So whether you’re celebrating a Leeds United victory, watching Bradford City’s march towards the Premier League, or witnessing Manchester City collect yet another trophy, make sure you understand the tax consequences before booking the hospitality package.

After all, football already provides enough surprises without HMRC joining in.